Each month-end we publish total return data for various investment market indices, as well as a composite portfolio return benchmark for model portfolios of three different asset allocations. These may be useful guides to reasonable performance of your own portfolio or its components.
Click to view the Index Return Table.
Click to view the Portfolio Benchmarks.
Equity markets in North America posted stellar returns in 2024 on the heels of a terrible 2022 and the start of a recovery in 2023. International markets went along for the ride until October, when they started to lose most of the year’s gains in the third quarter. North American markets peaked at the start of December, and gave back some gains, ending the year around October levels.
Declining central bank interest rates in 2024 have pulled down short term bond yields, but longer bonds still yield over 3.5% for Canadian 10-year bonds, and over 4.5% in the US. Recent strength in US GDP and employment statistics have decreased market expectations for further rate cuts south of the border. In Canada, economic statistics are weaker, and we may expect some further rate cuts here. International markets continue to feel the weight of conflicts in Ukraine and the middle east, as well as uncertainty over US trade policy.
(Source: tradingeconomics.com)
Canadian interest rates were generally declining in 2024 after peaking in 2022-2023. The graph shows the top rates offered by over 25 institutions we deal with, for terms of 1 – 5 years (Source: Cannex Information Exchanges). The leftmost bar in each group shows the rate before Covid, the next bar the ultra-low Covid-era rates, both series showing the normal pattern of long-term rates being slightly higher than short rates. This pattern was inverted during the post-Covid rate increase phase, and just this year the 1-year rates have finally dropped below the 2-year rates, but longer terms are still below the 2-year rate. The market widely expects the Bank of Canada to cut short term rates a little further in 2025, since they are still well above pre-Covid levels.
Each month-end we publish total return data for various investment market indices, as well as a composite portfolio return benchmark for model portfolios of three different asset allocations. These may be useful guides to reasonable performance of your own portfolio or its components.
Click to view the Index Return Table.
Click to view the Portfolio Benchmarks.
Each month-end we publish total return data for various investment market indices, as well as a composite portfolio return benchmark for model portfolios of three different asset allocations. These may be useful guides to reasonable performance of your own portfolio or its components.
Click to view the Index Return Table.
Click to view the Portfolio Benchmarks.